August 15, 2013
In the approach to consider a company’s viability sustainability is relevant. Big market players have to devise innovation or partner or acquire innovation. The role of content is a major conversation on migration, cost, ownership, strategy, aggregation, security, verification and privacy. These conversations will persist as more content is produced. Here is another piece that is being generated. The news of “Apple Acquires Content Service Matcha.tv” is another perspective of the new reality of the content conversation. This news may be benign or a lens of future acquisitions that open the door for content architecture on the rise or some may say demise.
CIO Today “Apple has acquired the small online content service Matcha.tv, suggesting that it is moving to release a new Apple TV in the near future. The deal is believed to have gone down for an estimated $1 million to $1.5 million. Matcha has been offline for a few months now after shutting down its Web site in May.”
Apple TV’s competition is obvious as cable companies disappointby lowering service, fail to expand on technology and continue to increase rates have raised the profiles of aggregators such as, Netflix, Hulu, Amazon Prime, iTunes and other carriers to showcase content.
This content is just not commercial programming but news as well. The acquisition of the Washington Post by jeff Bezos is another sign of content shifting to full media technological platform for managing the varied appetites of information that is timely and profitable.
CIO points out that, “Now that the acquisition has been confirmed for the most part and Matcha’s employees will work for Apple for two years, we still do not know what Apple plans to use the service and technology for. Of course, the most obvious implementation would be including aggregation and recommendation features in Apple TV, but there could be other uses as well.”
The gotcha is this deal is Apple‘s is in a spiral of innovation. This spiral is placing the company to seek solutions based on its existing platforms that may lead to cannilbalization as new products are slowly being introduced.
The thought of Apple becoming a TV or more is hard to conceive as their die hard consumers are attached to the platforms of tactile and audio communication bound by networks versus other hard core players such as, Samsung (005935 (KRX)₩865,000+16,000.00 (+1.88%)) that is becoming a virtual tour de force with Panasonic (PCRFF (OTCMKTS) $8.83-0.27 (-2.97%))managing in subtle conventional opportunities.
Apple can continue to feed its customers from the same smorgasbord but the meal will soon become less gratifying as time goes on if new foods are not introduced for tasting making sustainability harder to achieve.